Eagle Materials experienced significant revenue increases in concrete and aggregate in its latest quarter, ending March 31.
The company’s fiscal fourth quarter ended on that date with Eagle reaching a quarterly revenue of $39.5 million in concrete and aggregate. That’s an increase of 39 percent.
In addition, fourth-quarter operating earnings in concrete and aggregate were $2.5 million – a 13 percent increase. According to Eagle, the increase reflects improved sales volumes and pricing, as well as the financial results of a concrete and aggregate business Eagle acquired last August.
Eagle’s fiscal 2020 also ended March 31, with the company generating a concrete and aggregate revenue of $181.3 million over the 12-month stretch. Concrete and aggregate revenue was up 31 percent in Eagle’s fiscal year.
Also, Eagle says concrete and aggregate reported fiscal 2020 operating earnings of $17.6 million – a 36 percent increase.
“Having achieved record results in fiscal 2020, we entered this crisis period in a strong financial position, and we are taking prudent actions to sustain the financial health of our business,” says Michael Haack, president and CEO of Eagle. “In light of the risks posed by the COVID-19 (coronavirus) pandemic and its possible future effects on our business, we are managing our balance sheet and cash flow for stability today and in the future. We are limiting capital spending to critical projects only, managing inventory levels to improve working capital, and taking additional steps such as suspending share repurchases and future dividends to maximize free cashflow.
“The sale of our concrete and aggregates business in northern California announced on April 17, coupled with the carryback treatment of our net operating loss, will increase our near-term liquidity considerably,” Haack adds.
Eagle’s fiscal 2020 revenue in its heavy materials sector, which includes cement, concrete and aggregate, as well as joint-venture and intersegment cement revenue, was $933.3 million – a 17 percent increase. Heavy materials annual operating earnings increased 12 percent to $198.9 million, primarily because of higher sales volumes and net sales prices, Eagle says.
